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We have a house that we  are under no obligation to pay the mortgage  on as  stated in the letters we receive from the mortgage company.

The debt was included in  bankruptcy and debt was removed from our credit reports according to their records.We have been making voluntary repayment on the debt since 2010 instead of them foreclosing My question is are we truly

under no obligation to pay this back and what happens if we tell the mortgage company we would like to surrender the house now?

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15 minutes ago, fugatem46 said:

are we truly under no obligation to pay this back

 

If you did not officially re-affirm the debt prior to your discharge then, no, you are not obligated to pay.

 

Better read the following to make sure you didn't do something without realizing it:

 

https://en.wikipedia.org/wiki/Reaffirmation_agreement

 

16 minutes ago, fugatem46 said:

what happens if we tell the mortgage company we would like to surrender the house now?

 

That is up to the mortgage company and nobody can predict what any given lender will do.

 

One thing you have to understand is that, if you continue paying, the lender won't lift a finger to do anything as long as money is coming in.

 

If you want the lender to take back the house, you have to stop making your payment and tell them you won't be making any payments ever again and you'll either sign over the deed or they can foreclose.

 

Then see what happens.

 

My problem with that is that you have been paying down the principal for the last 7 years. Isn't there some equity in the house that you should be concerned with? If it's substantial and the house is in decent shape you might wish to negotiate with the lender to allow the sale so you can keep some of the money. Obviously, the lender cannot ask you to do that but there is nothing stopping you from offering to pay the debt in exchange for a release.

 

If they don't want that and you don't want to keep the house, just quit paying and live there for free. Accumulate cash for a couple of months during the process.

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On 8/19/2017 at 6:42 PM, fugatem46 said:

are we truly

under no obligation to pay this back

 

No one here is familiar with the terms of your mortgage.  Nor has anyone here looked at any documents in connection with your bankruptcy.  The entirety of what we know about your situation is your statement that you are "under no obligation to pay the mortgage  on [your house] as  stated in the letters [you] receive[d] from the mortgage company."  Of course, we haven't read those letters, so we have no way of knowing if your conclusion that you aren't obligated to pay the mortgage is correct.  Curiously, despite having concluded that you're under no obligation to pay, you told us that you " have been making voluntary repayment on the debt since 2010 instead of them [sic] foreclosing."

 

With all that being said, it sounds like your bankruptcy may have discharged your personal liability for the mortgage.  However, the mortgagee's secured interest against your property would not have been discharged, which means that, if you stop paying the mortgage, the house will presumably go into foreclosure.

 

 

On 8/19/2017 at 6:42 PM, fugatem46 said:

what happens if we tell the mortgage company we would like to surrender the house now?

 

We have no conceivable way of knowing exactly what will happen.  Call the lender and ask.

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